MILK
April Class III milk futures moved above $18 again for a brief period before slipping back again. That has been twice now that it reached above that level in as many days. The saying is that a third time is a charm. However, that will need to be supported by underlying cash. The market may be in somewhat of a holding pattern as it assesses supply and demand. We know milk production is improving, and spring flush will be taking place sooner than usual. Whether this will overwhelm the market for a period or not remains to be seen. Some plants have initiated production quotas as they anticipate heavy milk receipts, while others may be contemplating it as they see increasing milk receipts. Dairy exports did not fare as well in January as they did a year ago. Total dairy exports were 5.3% below January 2020 at 160,887 metric tons. The total value of those exports declined 8.9% to $505.5 million.
AVERAGE CLASS III PRICES
| 3 Month: | $17.49 |
| 6 Month: | $17.87 |
| 9 Month: | $18.00 |
| 12 Month: | $17.88 |
CHEESE
No market direction was received from cheese Wednesday, resulting in slightly lower futures. Traders were unsure of market direction, but have not turned bearish on the market, but rather cautious. Cheese exports in January did not fare well, posting a decline of 9.9%, totaling 25,232 metric tons. This was quite a bit lower than 2019, which had a volume of 27,671 metric tons for the same month. Exports for the November through January time frame were down 9.1%. Dry whey continued to perform well with exports up 15.1% at 47,348 metric tons. Export for the three-month period showed an increase of 22.8%.
BUTTER
Butter price is nearing the high of last week as it rebounded from Tuesday's loss. Price seems to be well supported but may also have a limited upside. Butter exports in January increased 80.5% from January 2020 and are higher than 2019. Exports totaled 3,198 metric tons. November through January exports increased 69.2% compared to the same period a year earlier. Skim milk powder/nonfat dry milk exports declined 9.6% in January, totaling 62,868 metric tons with exports down 10.7% for the November through January period compared to the same period a year earlier.
OUTSIDE MARKETS SUMMARY
March corn fell 14.25 cents, ending at $5.4775. March soybeans fell 29.75 cents, closing at $14.1150, with March soybean meal down $9.10 per ton, closing at $410.10. March wheat declined 5.75 cents, closing at $6.5075. April live cattle declined $0.87, ending at $118.77. April crude oil gained $0.43, closing at $64.44 per barrel. The Dow jumped 464 points, ending at 32,279, while the NASDAQ slipped 5 points, closing at 13,069.
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